Sellers remain in near-term control
But downside move remains limited by the 1.3200 handle and the 100-day MA (red line) @ 1.3182. Despite a reiteration of dovish comments by Fed officials yesterday, it proved not to be enough for the pair to find further downside so traders will now have to wait on the US CPI release later for a possible catalyst to decide which direction the pair will be heading next.
As mentioned yesterday, the pair is very much sitting in «no man’s land» at the moment with sellers retaining near-term control as price still sits below the 100-hour MA @ 1.3262 but continues to find it difficult to break below the 100-day MA.
The pair is now at session lows @ 1.3196 but unless sellers can find a way to break below the 100-day MA, it’s still very much a case of finding the next directional move as traders continue to reassess price action at these levels.